Brocade Communications SystemsStock Price and Value Analysis

Should you buy Brocade Communications Systems stock? (NasdaqGS:BRCD). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is making money at a decent rate.
  • This stock is on sale.
  • This company has fluctuating growth.
  • This company is less known than others.
  • This company has a low dividend yield.

BRCD Free Cash Flow Trend

Based on historical returns, we believe that Brocade Communications Systems can grow its free cash at a rate of about 6%. That's positive!

Free Cash Flow trendline for BRCD
Free Cash Flow trendline for Brocade Communications Systems

Inside the BRCD Numbers

BRCD Price
(Brocade Communications Systems stock price per share)
$12.73
[?] BRCD Fair Price
(based on intrinsic value)
$14.65
[?] BRCD Safety Price (based on a variable margin of safety) $8.79
[?] PE Ratio versus Sector 989% higher than other Technology stocks
[?] PE Ratio versus Industry 586% higher than other Data Storage Devices stocks
[?] Cash Yield 8.90%
[?] Free Cash Flow Jitter 29%
[?] Dividend Yield 2%

Is Brocade Communications Systems Stock on Sale?

We believe that Brocade Communications Systems may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Brocade Communications Systems looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy BRCD Stock?

Does Brocade Communications Systems have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.